The Probability That a Particular Brand of Smoke Alarm Will

question 174

Multiple Choice

The probability that a particular brand of smoke alarm will malfunction in the presence of smoke is 0.002.A batch of 100,000 such alarms was produced by independent production lines.Which of the following distributions would you use to figure out the probability that at most 5,000 of them will malfunction in case of a fire?

• A)Hypergeometric distribution.
• B)Poisson distribution.
• C)Binomial distribution.
• D)Uniform distribution.

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Definitions:

Materials Requirements Planning

A system used in manufacturing to calculate materials needed for production, ensuring the right materials are available at the right time and in the correct quantities.

Inventory Levels

The amount of goods and materials a company holds for the purpose of resale or production.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of its customers and the terms of credit to extend.

Creditworthy

Describes a borrower who is deemed likely by lenders or creditors to repay debt obligations based on their financial health and previous repayment history.